Workers of the defence company Zastava Oruzje seized Monday the company's storage facilities and announced they would stay there until the government finds a solution for the problems plaguing the company.

According to head of the Zastava Oruzje worker union Dragan Ilic, the decision to seize the facilities was made because of the government's refusal to sit down with the union and discuss the numerous issues within the company.

The workers are holding the facilities where a large quantity of finished arms and test ammunition are located.

The union sees no way out of the current situation, where the company's production lines have not been employed to their full capacity because there are no new contracts and no approval from certain ministries required to fulfil the contracts already signed.

"The declining influx of funds affects the deterioration of the company and worker pays, which cannot be paid out. It also threatens production," Ilic noted.